Who pays licensing fees to Camp Margaritaville for the right to use Margaritaville brand names?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ts (collectively the "Camp Margaritaville Intellectual Property") to Franchisor pursuant to the License Agreement dated as of January 14, 2019, a copy of which is attached hereto as Exhibit I (the "License Agreement") for the purpose of franchising Camp Margaritaville Resorts, maintaining the Camp Margaritaville System and System Standards, and for other purposes as set forth in that License Agreement.
Section 8.02 License. Franchisee's right to use the Camp Margaritaville Intellectual Property and Confidential Information is derived only from this Agreement and is limited to the development and operation of the Resort at the Site during the Term. Franchisee acknowledges that, as between it and Franchisor, Franchisor is the owner of all rights in the Camp Margaritaville Intellectual Property and the associated goodwill. Franchisee agrees that its use of the Camp Margaritaville Intellectual Property shall inure to the benefit of Franchisor, Licensor, or any such other Franchisor Affiliate as Franchisor may designate in writing. Upon expiration or termination of this Agreement for any reason, all of Franchisee's
rights to use the Camp Margaritaville Intellectual Property will automatically revert to Franchisor without cost and without execution or delivery of any document.
Section 8.03 Limitations on License.
- (a) Other Branded Components. Franchisor shall approve Franchisee's proposed use of the Camp Margaritaville Intellectual Property in the operation of the Resort pursuant to Article V. This Agreement does not provide Franchisee any right to use the Camp Margaritaville Intellectual Property in any way not explicitly provided herein. If such rights to use the Camp Margaritaville Intellectual Property are approved, any such approved components shall be addressed pursuant to a separate agreement or mutually agreed addendum to this Agreement.
- (b) Non-Branded Components.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, the franchisee pays licensing fees for the right to use Camp Margaritaville's intellectual property. Specifically, the franchisee's right to use the Camp Margaritaville Intellectual Property is derived from the franchise agreement and is limited to the development and operation of the resort. The franchisee acknowledges that Camp Margaritaville is the owner of all rights in the Camp Margaritaville Intellectual Property. Upon termination of the agreement, all rights to use the Camp Margaritaville Intellectual Property revert back to Camp Margaritaville without any cost.
Camp Margaritaville must approve the franchisee's proposed use of the Camp Margaritaville Intellectual Property. If such rights to use the Camp Margaritaville Intellectual Property are approved, any such approved components will be addressed pursuant to a separate agreement or mutually agreed addendum to the Franchise Agreement. The franchisee must also submit for Camp Margaritaville's approval all proposed uses of the Camp Margaritaville Intellectual Property, references to the Resort, links to a Resort System Website, and other information concerning a Travel Services Website.
In the event of de-branding, the franchisee is responsible for a $10,000 fee to Camp Margaritaville for oversight and approval of the de-branding actions. This fee is separate from the franchisee's costs of the de-branding actions. The franchisee must also close accounts with suppliers or vendors opened in connection with the operation of the Resort under the Camp Margaritaville Intellectual Property.